Glossary

Terms that come up often in PE coverage, explained without the jargon.

• NAV Discount

  The gap between what a fund stake is marked at (its NAV) and what a buyer will actually pay for it in a secondary sale, shown as a percentage of NAV.

• NAV Loan (NAV Facility)

  A loan a private equity fund borrows against the net asset value of its whole portfolio, rather than selling any of it, to free up cash for distributions.

• Price Discovery

  The process by which a buyer and seller agree on what an asset is actually worth, typically through a competitive sale.

• Secondaries (Secondary Sale)

  The sale of an existing stake in a private equity fund or portfolio company to another investor, instead of the sponsor's usual exit route of a sale or IPO.